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Flipkart Investments, an arm of e-commerce firm Flipkart, on Wednesday exited Aditya Birla Fashion and Retail by selling its entire 6 per cent stake in the company through block deals worth Rs 583 crore. Following the stake sale, shares of Aditya Birla Fashion & Retail (ABFRL) plunged nearly 11 per cent to trade at Rs 76.94 apiece on NSE. Flipkart Investments is a wholly-owned subsidiary of Flipkart Pvt Ltd (FPL). FPL belongs to the US-based Walmart Group.
As per the block deal, up to 7.31 crore equity shares of ABFRL were sold at a floor price of Rs 79.50 per share. This represents a discount of about 7.6 per cent to ABFRL's closing price of Rs 86 on the National Stock Exchange (NSE) on Tuesday, as per the term sheet reviewed by PTI. Goldman Sachs is the sole bookrunner for the deal. The transaction comprises a sale of approximately 73.17 million shares (7.31 crore shares) amounting to around 6 per cent stake in Mumbai-based ABFRL.
At the offer floor price, the total deal size is estimated at Rs 583 crore (USD 68.1 million) which is executed via one or more block deals on the NSE and BSE. The offer is entirely secondary in nature, with no fresh equity being issued by the company.
In October 2020, ABFRL announced that it is raising Rs 1,500 crore from Flipkart Group. Last month, ABFRL said its consolidated net loss narrowed to Rs 23.55 crore in the fourth quarter ended March 2025 from a net loss of Rs 266.36 crore a year ago.
Revenue from operations rose to Rs 1,719.48 during the quarter under review from Rs 1,575.12 crore in the year-ago period. Flipkart's exit marks a complete divestment of its holdings in ABFRL, which houses brands such as Pantaloons, Van Heusen, and and Louis Philippe.
